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HomeMy WebLinkAbout6.a. Minutes of the September 2, 2008 City Council Special Work Session ProceedingsROSEMOUNT CITY COUNCIL SPECIAL WORK SESSION PROCEEDINGS SEPTEMBER 2, 2008 CALL TO ORDER Pursuant to due call and notice thereof a special work session of the Rosemount City Council was held on Tuesday, September 2, 2008 at 6:33 p.m. in the Conference Room of City Hall at 2875 145 Street West. Mayor Droste called the meeting to order with Council Members Baxter, DeBettignies, Shoe Corrigan and Sterner in attendance. Staff members present included City Administrator Johnson, City Engineer Brotzler, City Clerk Domeier and Finance Director May. DISCUSSION 2.A. Water Utility Rates City Engineer Brotzler summarized the letter in the packet and stated the conservation water rate structure was due by January 2010. Mr. Brotzler stated that in the next year the City Council will need to evaluate the water rates and develop a rate structure that meets the DNR water conservation standards. He explained the different options for moving forward and types of conservation rate structures. Discussion ensued about using a separate rate structure based upon the zoning of a property. Mr. Brotzler stated that water access charges were established with the single family homes using an "x" amount for a baseline. He added that larger users would put a larger burden on the infrastructure and the rates increase significantly based upon the usage. He noted that the average user goes through 9,000 gallons per month. Mayor Droste stated that second meters only promote more user consumption. He stated the issue should be addressed taking into account the projected growth rates. He did not want to force residents to add second meters because of the installation costs. Council Member DeBettignies stated that only about 20% of the residents have a second meter installed. Finance Director May stated that residents are making an investment because they want to use the water. He added that everyone has free reign to use as much water as they want. Mayor Droste wanted a system developed that offered credits or a base usage and determining the billing from those factors. City Administrator Johnson questioned if the City Council was in agreement to have the Utility Commission review the second meter policy. He also questioned if any of the options provided by Mr. Brotzler should not be considered. Council Member Baxter did not support a seasonal rate but did support charging more for excess use during prime times of the year. Council Member Shoe Corrigan requested that staff research and check with other cities on their best practices for encouraging water conservation. Finance Director May stated there was plenty of lead time from an administration standpoint to implement the changes and educate the residents. Council Member Baxter questioned if there could be incentives to reduce the total use. Mr. Brotzler stated that the rates are based off of an expense the City has for operating the system. He added that while the City may end up driving water conservation less usage would result in less revenue. He stated that an increase in revenue would be needed to offset the costs. Mr. May stated he was not aware of another city that (04. ROSEMOUNT CITY COUNCIL SPECIAL WORK SESSION PROCEEDINGS SEPTEMBER 2, 2008 gave a rebate or a credit on a bill for water conservation. He added that while it would not be impossible it would be a lot more manual work to accomplish. Mayor Droste requested that the Utility Commission investigate the second meter decision. Mr. Brotzler questioned if the goal was to eliminate the second water meter. Council Member Baxter questioned if the City wanted to charge residents the sewer charge on water that is going on lawn. If not, he suggested getting rid of the second meter; Mayor Droste questioned the policy and cautioned that the City was adding a cost to homes that other cities do not charge. Discussion ensued about grandfathering in all second meters that were installed in the past two and a half years or prorating the amount. Mr. Brotzler stated that over time making any changes mean the City will have to monitor the revenue to balance out moving forward. Mr. Johnson questioned if the City should remain revenue neutral or include a cost of living increase. Council Member Shoe Corrigan preferred a gradual increase. Council Member Baxter stated the City did not have to be revenue neutral. Mayor Droste directed staff to have plenty of information available for the residents when the rate changes occur. The direction of the City Council included no seasonal up charge; investigate the second meter issues; going forward the rates did not have to be revenue neutral; educate the public on the changes in rate; include the same sewer rate across the board and researching how other cities promote water conservation. 2.B. UPDATES Compost Applications City Administrator Johnson stated that Compost Partners, LLC withdrew its Interim Use Permit, Zoning Text Amendment and Mineral Extraction Permit after the August 26, 2008 Planning Commission meeting. Shenanigan's Pub Patio City Administrator Johnson stated that since the August 19, 2008 meeting Shenanigan's resubmitted a new drawing for the patio. The owner was looking to install a patio on the south side of the building. He stated that the revised plans would be discussed at a future public hearing. Budget Hearing Mr. May stated that because there was only a small increase to the overall levy the City was not required to hold a truth -in- taxation hearing. The City Council preferred to still hold the hearing to allow citizens the opportunity to speak about budget issues. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Droste and Second by Sterner the meeting was adjourned at 7:15 p.m. Respectfully Submitted, Amy Domeier, City Clerk